Are stocks still in a bubble?
Started by Riversider
over 14 years ago
Posts: 13573
Member since: Apr 2009
Discussion about
Current S&P 500 Dividend Yield: 1.99% -0.02 (-0.90%) Mean: 4.33% Median: 4.28% Min: 1.11% (Aug 2000) Max: 13.84% (Jun 1932) 12-month S&P 500 dividend yield (dividend / price). http://www.multpl.com/s-p-500-dividend-yield/
Useless information.
The useful information would be a comparison of the dividend yield to the risk free treasury. Additional helpful information would be the expected future rate of growth of the dividends. In 1932, it's unlikely that there was any forward short-term dividend growth.
Unlike earnings dividend growth rate has historically been around 6% and fairly stable, The ten year yield is around 2%, however the duration of stocks is closer to 50 years.